Everyone chitchats about cryptocurrencies nowadays. They prefer to invest in them or murmur that cryptocurrency terms are nothing more than a “Ponzi Scheme”. Another reason these haters put forward is the abstract concept. Actually, it is pretty bizarre to hear these accusations from those believing in the American Dollar or any fiat currency because, at the end of the day, none of those so-trusted fiat currencies is neither stable nor physically in reserves. They are just digits in your bank account, like all unbacked assets. From this mindset, there is no difference between a fiat currency and a cryptocurrency.
The new online world is multinational, self-reliant, and unlimited. It was just a matter of time before our point of view in monetary terms would alter. When the calendar showed 31 October 2008, a pseudo-person(s) called Satoshi Nakamoto launched an avant-garde manifesto ahead of its time. Called “Bitcoin: A Peer-to-Peer Electronic Cash System”, this text has become one of the climacterics in the finances of human history.
What is Cryptocurrency?
To clear the cloud, cryptocurrency is a digital currency, an alternative payment method designed to utilise encryption. You can transfer your cryptos without needing an issuer like a conventional bank or government. They are best known for their protection and confidentiality to be imperceptible on a system where every account flashes like a red alert through every single transaction. To sidestep authorities brings freedom and a whole new technique to how finances should be.
Demolishing the long-lasting reign of higher authorities by decentralization and liberalism, in contrast with 180 fiat currencies around the globe, cryptocurrencies are not regulated by anyone. There is no emperor or power. Is it the fresh breath required? Is this how a currency must function? Does it give us some inklings about what is waiting for us?
Cryptocurrencies as Assets
Yes! We are not speaking of regulated currencies yet; the value of crypto coins may change from time to time. Moreover, since they are not synchronized with each other, Polkadot may climb when Bitcoin sinks or vice versa. The dynamic market can get pretty unpredictable and exciting, even for old boys in the financial sector. Actually, this is the primary reason why Bitcoin and other cryptocurrencies have gained vogue. In addition to delivering invisible transfers between holders, their volatility shifts them into a brilliant investment instrument for buy/sell positions.
It is no wonder that the crypto market has evolved into one of the enormous sectors worth billions of USD. There are myriad elements in this ecosystem, including crypto developers, exchanges, and analysts. The daily trading volume is expected to overextend $95 billion by the beginning of 2023. We can count numerous countries with lower GNPs (Gross National Product) than this outstanding amount. At the time of writing this article, over 10,000 crypto coins, altcoins, and tokens are out there. As a parenthesis, the significant contrast between altcoins and tokens is that altcoins have their own distinguishability, while tokens can only perform on Blockchain.
Naturally, such a thriving, tremendous, and ever-growing ecosystem comes with different jargon and terminology. If you are unfamiliar with the recent major cryptocurrency abbreviations and crypto acronyms, following the analyses and forums regarding the potential can be perplexing. To be honest, scanning the Internet again and again may tire you, which will also distract you from what you are focused on. For this reason, to assist our readers through crypto abbreviations, we have listed the most commonly used ones they will encounter almost in every single page concentrating on cryptos.
Before starting, here are some popular cryptocurrencies and their clipping names, mainly produced by their initials below:
We would like to say, “That’s all, Folks”; however, the fact is a little bit more complex than just generally used crypto shortenings. You will probably come across a lot of multifarious and alien initials for the ABC of cryptocurrencies. Here are some of the most prevalent acronyms that are best to know before stepping into the cryptocurrency world. They do not only refer to how X coin works but also other specifications indicating if it is worth trading. Thus, please process fundamental acquaintance for the ones you want to buy or sell.
- BIP (Bitcoin Improvement Proposal)
- BTM (Automatic Teller Machine for Bitcoin)
- DAO (Decentralised Autonomous Organization)
- DPoS (Delegated Proof of Stake)
- EEA (Enterprise Ethereum Alliance)
- EIP (Ethereum Improvement Proposal)
- ERC (Ethereum Request for Comments)
- EVM (Ethereum Virtual Machine)
- FA (Fundamental Analysis)
- LN (Lightning Network)
- MACD (Moving Average Convergence Divergence)
- MoE (Medium of Exchange)
- P2P (Peer to Peer)
- PoA (Proof of Authority)
- PoB (Proof of Burn)
- PoD (Proof of Developer)
- PoS (Proof of Stake)
- PoW (Proof of Work)
- SC (Smart Contract)
- SegWit (Segregated Witness)
- SoV (Store of Value)
- TA (Technical Analysis or Trend Analysis)
- UoA (Unit of Account)
- UTC (Coordinated Universal Time)
- WP (White Paper)
- YTD (Year to Date)
Frankly, this is more than pleasing since it can get pretty creative. Just like any other subject on the Internet, the world of cryptocurrencies has constructed its own way of voicing itself. To read forums or follow social media for the approaching tribulations and the recently predicted expectations. Understanding the essential jargon of cryptocurrencies can be a life savior, whereas being unfamiliar with them can make you fail in the crucial junctures in a market where everything emerges in a blink of an eye.
BUIDL (Purposeful misspelling of “Build” for irony)
FOMO (Fear of Missing Out)
HODL (Purposeful misspelling of “HOLD” for Hold On for Dear Life)
DYOR (Do Your Own Research)
FUD (Fear, Uncertainty, Doubt)
FUDster (Someone spreading Fear, Uncertainty, and Doubt in the crypto market)
ELI5 (Explain It Like I am 5)
JOMO (Joy of Missing Out)
KYC (Know Your Customer)
TLT (Think Long Term)
OCO (One Cancels the Other)
AMA (Ask Me Anything)
REKT (“Wrecked” with significant losses)
TOR (The Onion Router, someone sending anonymous data)